Goldman Sachs could benefit if it expanded its traditional banking by acquiring online brokerage E*Trade Financial given the Wall Street bank's revenue has been largely flat this decade, said CLSA analyst Mike Mayo.
Reuters reports that Goldman would gain from increased deposits, freeing up of excess capital that is otherwise trapped and vitality to revenue growth, the veteran banking analyst wrote in a client note.
The bank, which carries out consumer, corporate and private banking through GS Bank USA, has initiated the expansion of traditional banking with the acquisition of an online banking platform from General Electric last month.
Mayo — who has an "outperform" rating on Goldman — is rated four stars out of five for his recommendations on the stock, according to StarMine.
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